Polygon sees strong oversold rally after overall crypto market rally

Time：2022-01-27 Source： 978 views Trending Copy share

MATIC also gained nearly 40% as the crypto market ushered in an improvement in sentiment brought about by the inflow of $250 billion in funds.

On Jan. 26, Polygon (MATIC) emerged as one of the top performers among the leading cryptocurrencies by market cap, rising nearly 17% to an intraday high of $1.825.

The rally came amid a synchronized rally across the cryptocurrency market that began on January 24. Specifically, investors and traders poured more than $250 billion into the overall crypto market, benefiting bitcoin (BTC), ether (ETH) and many other altcoins in the process.

Polygon, the second layer scaling solution for the ethereum blockchain, has also seen a rebound in the crypto market rally. The valuation of its native token, MATIC, went from as low as $9.77 billion on Jan. 24 to as high as $13.58 billion two days later.

Meanwhile, its price jumped from $1.312 to $1.825 over the same period — a gain of nearly 40% in just three days.

Fed meetings and high-profile hiring

The latest bout of buying in the bull market comes ahead of the Fed's scheduled announcement of a rate hike on the afternoon of Jan. 26.

Specifically, in recent months, cryptocurrencies have also experienced several major swings in anticipation of a series of interest rate hikes by the U.S. central bank to fight inflation. Likewise, the stock market has been hurt by the prospect of the Federal Reserve shrinking its balance sheet and raising interest rates.

According to Luca Paolini, chief strategist at Pictet Asset Management, one might expect that the recent turmoil in the stock market and the growing rift between Ukraine and Russia has attracted the attention of NATO allies, which could allow the Fed to moderate its rate hikes speech.

Still, Polygon managed to outpace top rivals like Bitcoin and Ethereum in terms of intraday gains, and a high-profile hiring appears to be the core reason behind it.

As Cointelegraph reported on Jan. 25, YouTube’s head of gaming, Ryan Watts, left the streaming giant to join Polygon Studios, which works on games and NFTs, backed by a $100 million fund provided by Polygon.

The news appears to have boosted investor appetite for MATIC, prompting it to outperform other large-cap cryptocurrencies.

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